Published: April 2025

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Navigating GST and BAS requirements is a critical yet complex task for Australian business owners. With the ATO enforcing stricter compliance in 2025, including mandatory monthly GST reporting for non-compliant small businesses starting April 1, understanding these obligations is more important than ever. This guide simplifies GST and BAS, highlights common errors, and explains how a bookkeeper with custom packages can ensure compliance and save time.

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What Are GST and BAS?

Goods and Services Tax (GST) is a 10% tax on most goods and services sold in Australia. Businesses with an annual turnover of $75,000 or more ($150,000 for non-profits) must register for GST, collecting it on taxable sales and claiming credits for GST paid on expenses. The Business Activity Statement (BAS) is a form submitted to the ATO to report GST, PAYG withholding, and other taxes, typically quarterly, though monthly reporting applies for businesses with $20 million or more in GST turnover or those flagged as non-compliant. In 2024, BAS errors led to over $10 million in ATO penalties, emphasising the need for accuracy.

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Common GST and BAS Mistakes

Errors in GST and BAS reporting can lead to penalties or cash flow issues. Key mistakes include:

1. Incorrect GST Coding: Miscoding taxable vs. GST-free items distorts BAS calculations, causing over- or underpayment.
2. Missing Input Tax Credits: Overlooking GST credits on eligible expenses, like office supplies, reduces refunds.
3. Late BAS Lodgments: Missing deadlines (e.g., October 28 for Q1) incurs fines, with 25% of SMEs lodging late in 2024. Non-compliant businesses face monthly reporting in 2025, increasing administrative burdens.

A bookkeeper can mitigate these risks, using expertise and technology to maintain compliance.

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How a Bookkeeper Simplifies Compliance

A bookkeeper streamlines GST and BAS processes with custom packages tailored to business needs. For example, imagine a Perth café struggling with GST tracking across daily sales. A bookkeeper implements Xero to automate transaction categorisation, ensuring accurate GST coding. They review entries monthly, prepare BAS lodgments, and submit them before ATO deadlines, saving the owner 8 hours per quarter and avoiding penalties. This approach aligns with 2025’s compliance demands, including:

• Automated GST Tracking: Xero syncs sales and expenses, with the bookkeeper verifying GST codes.
• BAS Preparation: The bookkeeper compiles accurate BAS data, factoring in 2025’s monthly reporting for non-compliant businesses.
• Real-Time Insights: Xero’s dashboard shows GST liabilities instantly, aiding cash flow planning.
• Tailored Support: Custom packages provide only the services needed, from GST setup to full BAS management.

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2025 GST and BAS Updates

The ATO’s 2025 changes emphasise compliance. Starting April 1, around 3,500 small businesses with a history of late lodgments or incorrect reporting must switch to monthly GST reporting to improve accountability. This shift requires robust bookkeeping to manage frequent deadlines. Additionally, businesses can leverage Simpler BAS if their GST turnover is under $10 million, reporting only total sales, GST on sales, and GST on purchases, reducing complexity. A bookkeeper ensures these updates are seamlessly integrated, keeping businesses compliant.

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5 Steps to Stay Compliant

Follow these steps to master GST and BAS in 2025:

1. Register for GST: Confirm eligibility and set up GST in accounting software with a bookkeeper’s help.
2. Use Cloud Software: Adopt Xero or MYOB for streamlined GST tracking, managed by a bookkeeper.
3. Organise Records: Log all invoices and receipts digitally, with a bookkeeper ensuring accuracy.
4. Verify GST Coding: Monthly checks by a bookkeeper prevent coding errors.
5. Lodge BAS Early: Meet ATO deadlines (e.g., January 28 for Q2 quarterly) with bookkeeper-prepared BAS.

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Why Use a Bookkeeper?

A bookkeeper simplifies GST and BAS, offering:

• Accuracy: Error-free coding and ATO-compliant BAS, even with 2025’s monthly reporting rules.
• Time Savings: Automation frees up hours for business growth.
• Compliance: Stay ahead of ATO changes with tailored support.
• Flexibility: Custom packages meet your unique needs.